Ohio provides a great environment for small businesses and entrepreneurs. The state has a world-class workforce, offers easy access to North American markets, and features an economy that’s improved more than any other state. All of these assets helped Ohio earn its latest ranking as the eighth best tax climate in the U.S.
The “Small Business Tax Index 2016,” report published by the Small Business & Entrepreneurship Council, ranks tax systems in all 50 states from best to worst for small business and entrepreneurship. According to the index, Ohio’s tax climate is the eighth best in the country.
This year’s report evaluated 25 different tax measures and combined them into a single score that to compare and rank all 50 states. The report examines the tax rates on personal and corporate income, capital gains, and dividends and interest. It also considers whether or not states impose a death tax, adjusts tax brackets for inflation, and charges an alternative minimum tax on individuals and corporations.
Within the Midwest region, Ohio’s tax climate rannks the best and the state continues to be recognized in the top 10 for tax climate, ranking ninth on the 2015 index and eighth on the 2014 index.
“Ohio has remained in the top 10 because the state has done a good job reducing taxes in the last few years,” said Nick D’Angelo, director of governmental affairs at JobsOhio. “Ohio reduced the individual income, capital gains and dividends tax rates. The state also eliminated corporate income tax, corporate capital gains tax and the death/estate tax.”
With no corporate income or capital gains tax, Ohio ties for first with five other states in those two categories.
“Ohio wants to keep the tax burden low because lower taxes encourage investment and entrepreneurship,” D’Angelo said. “It’s good to see the state recognized as one of the tops states for small businesses.”